Ben Graham, 35, of Portland shops Monday at Maine Beer and Beverage Co. The new pricing system at state-run liquor stores will initially take an estimated $1.7 million from government coffers. Derek Davis/Staff Photographer

If you need to replenish your post-holiday bar and like Tanqueray, wait until Feb. 1 to restock. That’s when many new prices take effect at state liquor stores, lowering the cost of a 1.75-liter bottle of Tanqueray by $2 but raising the cost of a 1-liter bottle of Grey Goose vodka by $1. As for Maine’s most popular liquor – Allen’s Coffee Brandy – the price for a 1.75-liter bottle will remain the same.

Consumers of hard alcoholic beverages in Maine will see lower prices at liquor retailers on a wide range of the state’s most popular spirits in February – along with a lesser number of increases – thanks to a decision by the state Bureau of Alcoholic Beverages and Lottery Operations to revamp the way it prices liquor products. The change is intended to simplify the way brands and sizes of alcohol are priced, and is similar to systems used in other states where the government sets liquor prices, said Tim Poulin, the bureau’s deputy director.

NEW LIQUOR PRICES

The five best selling bottles of alcohol in Maine, with their size, price as of Feb. 1 and change:

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A majority of liquor varieties and sizes will not change. Of the 3,299 products sold in Maine, the prices of 2,044 will remain the same, 666 will decrease and 589 will increase.

For the state’s most popular alcoholic beverages, price decreases will outweigh increases in both the number of products and the average price change.

Among the 100 most popular spirits sold at Maine liquor stores, 23 will cost 50 cents to $2 less; 10 will cost 50 cents to $1 more; and 67 will not change in price.

At the top of Maine’s popularity list – determined by volume of sales – is the 1.75-liter bottle of Allen’s Coffee Brandy, which will not change from its current retail price of $19.99. However, the price of a 375-milliliter bottle of Allen’s will increase by 50 cents, to $6.49.

The state’s second-most-popular product, the 1.75-liter bottle of Orloff vodka, will cost 50 cents more, at $13.49. The state’s third-most-popular product, the 1.75-liter bottle of Captain Morgan spiced rum, will cost $1 less, at $28.99. Of the top 200 products sold in Maine, Bailey’s Irish Cream will get the biggest price reduction, a $3 drop to $44.99 for a 1.75-liter bottle.

The price changes stem from a new way the bureau determines the state’s gross profit from each sale. For the past three decades, Maine has negotiated the price markup for each alcohol product with the supplier on an individual basis, Poulin said. Suppliers have long wanted a more simplified system in which the markup is consistent across all alcohol varieties of the same type, such as a 750-milliliter bottle of premium vodka or a 50-milliliter mini-bottle of liqueur.

“They’ve been asking for it for a number of years,” he said.

The pricing change will initially benefit alcohol consumers and suppliers at the expense of the state. The total estimated cost to the state, based on sales during the 12 months ending Nov. 30, is $1.7 million, Poulin said.

However, he said, Maine officials expect to offset the revenue loss with “a continued aggressive pricing optimization on the brands that drive sales in our business.”

In other words, by being smarter about how the state sets prices on popular brands, officials believe they can reduce the number of shoppers who cross the border into lower-priced New Hampshire, where the pricing model is focused on lower margins and higher volume.

Still, the impending change is not an attempt to engage in a price war with Maine’s neighbor to the south, Poulin said.

“Their business model is completely different,” he said. “We’re not going to chase their tail.”

Liquor sales have been growing steadily in Maine over the past two years. For the 2015 fiscal year, which ended June 30, unit sales were up 4.9 percent over the previous year, Poulin said. Through December of the current fiscal year, they were up 4.4 percent from the year before.

“Additionally, our dollar sales are up over 6 percent over last year through December as well – all positive signs that we are doing all the right things to responsibly grow the spirits business in Maine and be competitive with New Hampshire,” he said.

Theresa Nessel, assistant manager and liquor buyer at Maine Beer & Beverage Co. in Portland, said the store is ready to make the wide-ranging price changes in February. She said state officials have been helpful in preparing retailers and answering their questions.

It remains to be seen whether Maine’s decision to change its pricing structure will benefit consumers and retailers in the long run, Nessel said.

“It could be a good thing for the state,” she said. “Time will tell whether it will be beneficial or not.”

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Dan Piippo

I’m wondering if Maine’s liquor pricing will deter folks from buying their booze in NH.

axion56

That’s probably part of the theory .

kenindy

Hardly, if they live nearby or pass though it anyway.

bootjack

Cheaper booze while making food more expensive by taxing it. Great formula.

SPLAX

See how well Mainers spend to give your politician(s) more revenue to spend for you.
Pretty good idea….

Now, if they would just do the same for legalizing sales of non-medical marijuana..”just imagine”…..(ahh that logo’s been used!)

axion56

Consider what taxes could be generated by legalizing marijuana , compared to taxes on alcohol and tobacco , and the State would actually generate a lot of revenue . NO , I don’t believe marijuana use leads to use of more hard core drugs and look at the abuse of alcohol and damage it does to a lot more people . Sure there will be plenty of debate over this comment . Just my opinion ……

kenindy

That will be another reason to plan my weekly shopping in Portsmouth next summer.

maineincrisis

We agree on something…. yay!

Nog

The state should get out of the booze business. Let private enterprise run it. They can’t run the state let alone a business.

maineincrisis

Never understood why the state is in the liquor business…. will they be in the pot business?

axion56

$$$$$$$

Andrew Menard

Got take advantage of keeping people fat…don’t lower the state’s #1 drinkie…the Millinocket Mai Thai….will continue to make us money….

Fake_Name2

I’m imagining this is how they determine booze prices in North Korea too. Maybe Maine could switch to something more efficient, something market-based. Just a suggestion.

splinterfoot

number of the beast

AliceOfForethought

the state needs to get out of the business of regulating/encouraging vice. liquor, lottery and gambling are not something the state should be looking to profit off, as they are generally detrimental to the quality of life of the most vulnerable citizenry. privatize with no subsidies and heavy regulation so the morally-bankrupt corporate money-worshippers don’t abuse the people they serve.

axion56

I agree w/ you to an extent , BUT , look at the number of buses that run to Foxwoods daily with senior citizens , the people that buy liquor in NH to save cash , I don’t really think there is any way to control this . Don’t some of the lottery sales go toward funding education or other beneficial causes ? , if so , I guess we have to continue with this system .